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Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network
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Kavoya Job Musyoka (Graduate School of Business, Hanyang University)
Gyoo Gun Lim (School of Business,Hanyang University)
Vol. 23, No. 4, Page: 1 ~ 31
10.13088/jiis.2017.23.4.001
Keywords
Business model, Intelligent advertising, Location-based advertising, Value creation, Metro
Abstract
Modern businesses are adopting new technologies to serve their markets better as well as to improve efficiency and productivity. The advertising industry has continuously experienced disruptions from the traditional channels (radio, television and print media) to new complex ones including internet, social media and mobile-based advertising. This case study focuses on proposing intelligent advertising business model in Seoul’s metro network. Seoul has one of the world’s busiest metro network and transports a huge number of travelers on a daily basis. The high number of travelers coupled with a well-planned metro network creates a platform where marketers can initiate engagement and interact with both customers and potential customers. In the current advertising model, advertising is on illuminated and framed posters in the stations and in-car, non-illuminated posters, and digital screens that show scheduled arrivals and departures of metros. Some stations have digital screens that show adverts but they do not have location capability. Most of the current advertising media have one key limitation: space. For posters whether illuminated or not, one space can host only one advert at a time. Empirical literatures show that there is room for improving this advertising model and eliminate the space limitation by replacing the poster adverts with digital advertising platform. This new model will not only be digital, but will also provide intelligent advertising platform that is driven by data. The digital platform will incorporate location sensing, e-commerce, and mobile platform to create new value to all stakeholders. Travel cards used in the metro will be registered and the card scanners will have a capability to capture traveler’s data when travelers tap their cards. This data once analyzed will make it possible to identify different customer groups. Advertisers and marketers will then be able to target specific customer groups, customize adverts based on the targeted consumer group, and offer a wide variety of advertising formats. Format includes video, cinemagraphs, moving pictures, and animation. Different advert formats create different emotions in the customer’s mind and the goal should be to use format or combination of formats that arouse the expected emotion and lead to an engagement. Combination of different formats will be more effective and this can only work in a digital platform. Adverts will be location based, ensuring that adverts will show more frequently when the metro is near the premises of an advertiser. The advertising platform will automatically detect the next station and screens inside the metro will prioritize adverts in the station where the metro will be stopping.In the mobile platform, customers who opt to receive notifications will receive them when they approach the business premises of advertiser. The mobile platform will have indoor navigation for the underground shopping malls that will allow customers to search for facilities within the mall, products they may want to buy as well as deals going on in the underground mall. To create an end-to-end solution, the mobile solution will have a capability to allow customers purchase products through their phones, get coupons for deals, and review products and shops where they have bought a product. The indoor navigation will host intelligent mobile-based advertisement and a recommendation system. The indoor navigation will have adverts such that when a customer is searching for information, the recommendation system shows adverts that are near the place traveler is searching or in the direction that the traveler is moving. These adverts will be linked to the e-commerce platform such that if a customer clicks on an advert, it leads them to the product description page. The whole system will have multi-language as well as text-to-speech capability such that both locals and tourists have no language barrier. The implications of implementing this model are varied including support for small and medium businesses operating in the underground malls, improved customer experience, new job opportunities, additional revenue to business model operator, and flexibility in advertising. The new value created will benefit all the stakeholders.
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서울지하철의 지능형 광고 비즈니스모델 설계
Kavoya Job Musyoka (한양대학교 경영대학)
임규건 (한양대학교 경영대학)
Keywords
Business model, Intelligent advertising, Location-based advertising, Value creation, Metro
Abstract
현대 기업들은 효율성과 생산성을 향상시킬 뿐 아니라 시장 진출을 위해 새로운 기술들을 채택하고있다. 광고 업계도 전통적인 채널 (라디오, TV 및 인쇄 매체)에서 인터넷, 소셜 미디어, 모바일 기반광고와 같은 새로운 매체로 지속적인 파괴적 혁신을 경험하고 있다. 본 연구는 서울 지하철에 지능형광고 비즈니스 모델을 제안한 사례이다. 서울은 세계에서 가장 분주 한 지하철 중 하나로서 메트로네트워크를 통해 마케팅 담당자가 다양한 고객과 잠재 고객 모두와 교류하고 상호 작용할 수 있는 플랫폼이 될 수 있다. 현재의 광고 매체의 대부분은 공간, 조명 등 국부적 한계를 가지고 있으나 본 사례의 지능형 디지털 광고 플랫폼은 데이터로 구동되는 광고를 통해 위치기반 모바일 전자상거래를 제공할 수 있다. 등록된 지하철 카드를 통해 고객 데이터를 분석하고 특정 고객 그룹을 타겟팅하고, 대상소비자 그룹을 기반으로 광고 사용자를 정의하고, 동영상, 애니메이션, 쿠폰, 문자 등 다양한 광고 형식을 제공 할 수 있다. 위치 정보를 통해 다음역을 탐지하여 지하철 안의 스크린이 다음 정차 할 역의광고에 우선 순위를 부여하고, 사용자 모바일에서 알림을 수신하도록 선택한 고객은 광고주의 사업장근처에 접근 할 때 알림을 받게 된다. 또한, 내비게이션 서비스를 통해 지하 쇼핑몰의 고객이 상점, 제품, 시설, 이벤트 등을 검색하고 광고나 추천서비스를 받을 수 있게 한다. 이러한 광고는 고객이 광고를 클릭하면 제품 설명 페이지로 연결되어 전자 상거래로 이어지도록 한다. 이 모델을 통해 개선된 고객 경험뿐만 아니라 지하상가의 중소기업 지원, 새로운 직업 기회, 비즈니스 모델 운영자에 대한추가 매출 및 광고 유연성 등 새로운 가치 창출이 가능할 것으로 기대된다.
Cite this article
JIIS Style
Musyoka, K. J., and G. G. Lim, "Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network", Journal of Intelligence and Information Systems, Vol. 23, No. 4 (2017), 1~31.

IEEE Style
Kavoya Job Musyoka, and Gyoo Gun Lim, "Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network", Journal of Intelligence and Information Systems, vol. 23, no. 4, pp. 1~31, 2017.

ACM Style
Musyoka, K. J., and Lim, G. G., 2017. Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network. Journal of Intelligence and Information Systems. 23, 4, 1--31.
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@article{Musyoka:JIIS:2017:703,
author = {Musyoka, Kavoya Job and Lim, Gyoo Gun},
title = {Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network},
journal = {Journal of Intelligence and Information Systems},
issue_date = {December 2017},
volume = {23},
number = {4},
month = Dec,
year = {2017},
issn = {2288-4866},
pages = {1--31},
url = {http://dx.doi.org/10.13088/jiis.2017.23.4.001 },
doi = {10.13088/jiis.2017.23.4.001},
publisher = {Korea Intelligent Information System Society},
address = {Seoul, Republic of Korea},
keywords = { Business model, Intelligent advertising, Location-based advertising, Value creation and Metro },
}
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%A Kavoya Job Musyoka
%A Gyoo Gun Lim
%T Designing an Intelligent Adver tising Business Model in Seoul’s Metro Network
%J Journal of Intelligence and Information Systems
%@ 2288-4866
%V 23
%N 4
%P 1-31
%D 2017
%R 10.13088/jiis.2017.23.4.001
%I Korea Intelligent Information System Society